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Prices

Which of the following takes place when a tax is placed a good ?

Economics Mcqs, Prices, Wages & Taxes /
Which of the following takes place when a tax is placed a good ?

A. a decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
B. an increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold
C. a decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold
D. an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold

Which of the following takes place when a tax is placed a good ? Read More »

Economics Mcqs, Prices, Wages & Taxes

Within the supply and demand model, a tax collected from the buyers of a good shifts the ?

Economics Mcqs, Prices, Wages & Taxes /
Within the supply and demand model, a tax collected from the buyers of a good shifts the ?

A. supply curve downward by the size of the tax per unit.
B. Supply curve upward by the size of the tax per unit
C. demand curve upward by the size of the tax per unit.
D. demand curve downward by the size of the tax per unit

Within the supply and demand model, a tax collected from the buyers of a good shifts the ? Read More »

Economics Mcqs, Prices, Wages & Taxes

Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?

Economics Mcqs, Prices, Wages & Taxes /
Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?

A. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.
B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.
C. There will be a shortage of petrol
D. There will be surplus of petrol

Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ? Read More »

Economics Mcqs, Prices, Wages & Taxes

Which of the following statements about a binding price ceiling is true ?

Economics Mcqs, Prices, Wages & Taxes /
Which of the following statements about a binding price ceiling is true ?

A. The shortage created by the price ceiling is greater in the short ran than in the long run.
B. The surplus created by the price ceiling is greater in the short run than in the long run
C. The surplus created by the price ceiling is greater in the long run than in the short run
D. The shortage created by the price ceiling is greater in the long run than in the short run

Which of the following statements about a binding price ceiling is true ? Read More »

Economics Mcqs, Prices, Wages & Taxes

Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?

Economics Mcqs, Prices, Wages & Taxes /
Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?

A. There may be long lines of buyers waiting for apartments
B. Landlords may discriminate among apartment renters
C. Landlords may be offered bribes to rent apartments
D. there will be a storage of housing
E. the quality of apartments will improve

Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls? Read More »

Economics Mcqs, Prices, Wages & Taxes

For a price ceiling to be binding constraint on the market the government must set it ?

Economics Mcqs, Prices, Wages & Taxes /
For a price ceiling to be binding constraint on the market the government must set it ?

A. above the equilibrium price
B. below the equilibrium price
C. precisely at the equilibrium price
D. at any price because all price ceilings are binding constraints

For a price ceiling to be binding constraint on the market the government must set it ? Read More »

Economics Mcqs, Prices, Wages & Taxes